IRS Delays Gig-Tax Filing Rule for Side Hustles of More Than $600

Posted on 12/23/22 | News Source: WSJ

The Internal Revenue Service on Friday gave millions of Americans a one-year reprieve on new tax-reporting requirements, delaying implementation of a law that requires e-commerce platforms such as eBayEtsy and Airbnb to give the tax agency information on users with more than $600 in revenue.

The delay means the platforms won’t have to send sellers and the IRS a blizzard of 1099-K tax forms early in 2023, and it gives opponents of the $600 threshold more time to push for a change in the law next year.

“The additional time will help reduce confusion during the coming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements,” said Acting IRS Commissioner Doug O’Donnell.